MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1792
AMENDING REPUBLIC ACT NO. 1405
WHEREAS, under existing legal framework, the Central Bank has the authority to examine all records of banks in the discharge of its responsibilities under the Central Bank Charter;
WHEREAS, the prohibition against inquiry into bank deposits adversely delimits the examining authority of the Central Bank.
WHEREAS, limited examination powers operate against effective supervision of banks and endangers the safety of deposits which may affect the public's faith in the banking system.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and make the following part of the law of the land;
Section 1. Section 2 of Republic Act No. 1405 is hereby amended to read as follows:
Section 2. All deposits of whatever nature with banks or banking institutions in the Philippines including investments in bonds issued by the Government of the Philippines, its political subdivisions and...
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Presidential Decrees
Amending Republic Act No. 1405
Presidential Decree No. 1792
Summary of Presidential Decree No. 1792 Amending Republic Act No. 1405
Confidentiality of Bank Deposits
- All deposits of any nature with banks or banking institutions in the Philippines, including investments in government bonds, are considered absolutely confidential. (Section 1)
- Exceptions to confidentiality:
- When examination is made during a special or general bank examination authorized by the Monetary Board, if there is reasonable ground to believe a bank fraud or serious irregularity has been or is being committed, and it is necessary to look into the deposit to establish such fraud or irregularity. (Section 1)
- When examination is made by an independent auditor hired by the bank for regular audit purposes, and the results are for the bank's exclusive use. (Section 1)
- Upon written permission of the depositor. (Section 1)
- In cases of impeachment. (Section 1)
- Upon order of a competent court in cases of bribery or dereliction of duty of public officials. (Section 1)
- In cases where the deposited or invested money is the subject matter of litigation. (Section 1)
Prohibition on Disclosure of Deposit Information
- It is unlawful for any bank official or employee to disclose deposit information to anyone other than those mentioned in Section 2 of the law. (Section 2)
- It is unlawful for an independent auditor hired by a bank to disclose deposit information to anyone other than authorized bank directors, officials, or employees. (Section 2)
Confidentiality of Bank Deposits
- All deposits of any nature with banks or banking institutions in the Philippines, including investments in government bonds, are considered absolutely confidential. (Section 1)
- Exceptions to confidentiality:
- When examination is made during a special or general bank examination authorized by the Monetary Board, if there is reasonable ground to believe a bank fraud or serious irregularity has been or is being committed, and it is necessary to look into the deposit to establish such fraud or irregularity. (Section 1)
- When examination is made by an independent auditor hired by the bank for regular audit purposes, and the results are for the bank's exclusive use. (Section 1)
- Upon written permission of the depositor. (Section 1)
- In cases of impeachment. (Section 1)
- Upon order of a competent court in cases of bribery or dereliction of duty of public officials. (Section 1)
- In cases where the deposited or invested money is the subject matter of litigation. (Section 1)
Prohibition on Disclosure of Deposit Information
- It is unlawful for any bank official or employee to disclose deposit information to anyone other than those mentioned in Section 2 of the law. (Section 2)
- It is unlawful for an independent auditor hired by a bank to disclose deposit information to anyone other than authorized bank directors, officials, or employees. (Section 2)